Shipping Industry - P&I club explained

PNI Club stands for Protection and Indemnity club, which is a mutual insurance association that provides coverage for ships and their owners. P&I clubs are non-profit organizations, typically established as unincorporated associations and governed by a board of directors. The club is funded by its members, who are typically ship owners or operators, and provides coverage for third-party liabilities such as personal injury, property damage, and pollution.

P&I clubs provide a range of insurance coverage including Protection and Indemnity (P&I) insurance, which covers the legal liabilities of shipowners and charterers for death or injury to passengers or crew, loss of or damage to cargo and third party liabilities. They also offer additional coverage such as war risks, kidnap and ransom, and cyber risks.

P&I clubs are generally considered the primary source of liability coverage for shipowners, since most commercial shipowners are required to carry P&I insurance as a condition of their charter or voyage contracts. These clubs also play an important role in ensuring that ships and cargo are properly insured and that claims are handled in a fair and efficient manner.

In summary, PNI club is a mutual insurance association that provides coverage for ships and their owners. They are non-profit organizations and provide coverage for third-party liabilities such as personal injury, property damage, and pollution. They also provide additional coverage such as war risks, kidnap and ransom, and cyber risks. These clubs are the primary source of liability coverage for shipowners and play a vital role in ensuring that ships and cargo are properly insured and that claims are handled in a fair and efficient manner.